By
Bhushan Akolkar
April 26th, 2024
Since last August when MicroStrategy made its first-ever Bitcoin purchase, the firm, under Michael Saylor’s leadership has not relented in topping its bag.
American business intelligence, mobile software, and cloud-based services firm, MicroStrategy Incorporated (NASDAQ: MSTR) has bought the Bitcoin dip once again, pushing its shares to ink slight gains of 0.64% in the pre-market session. According to the company’s filing, an additional 1,434 Bitcoin (BTC) has been purchased for approximately $82.4 million in cash at an average price of approximately $57,477 per Bitcoin.
As of December 8, 2021, the company held about 122,478 Bitcoins acquired for an approximate price of $3.66 billion at an average price of roughly $29,861 per bitcoin. Going by the current price of BTC which is pegged at $48,115 according to CoinMarketCap, MicroStrategy is up in gains for all of its acquisitions as its holdings are now worth about $5.89 billion.
The role of MicroStrategy in today’s cryptocurrency ecosystem is very pivotal and it gives reassurance to the outlook of the premier digital currency amongst institutional investors. While the hoard of investors sheath their swords with the incessant price corrections the market has been experiencing, MicroStrategy has continued to take advantage of the dip, defying all forms of criticisms and looking onward to the potential future gains the cryptocurrency will bring.
While MicroStrategy stock closed Thursday’s session down 7.02%, there has been a slight revival in the Pre-market today where it is up by 0.64% to $595.68, a move that has likely been fueled by the BTC acquisition news.
MSTR Bitcoin Bag: Promising Move or Damning Risk?
Since last August when MicroStrategy made its first-ever Bitcoin purchase, the firm, under Michael Saylor’s leadership has not relented in topping its bag. With unwavering trust in the potentials of the premier digital currency as a Treasury Reserve Asset, some of the company’s moves to satisfy this internal policy have received both commendation and criticism across the board.
Beyond the use of shareholders’ funds to make the Bitcoin purchases, MicroStrategy has also raised over $550 million in Convertible Senior Notes in December 2020. The firm successfully completed a $500 million Corporate Bond sale back in June this year, further using the proceeds to cement its latest acquisitions.
Critics have condemned the aggressive buying, noting that the volatility inherent in Bitcoin can push the price to a level it may become unprofitable for the firm in the long run. Michael Saylor has argued against these criticisms, often stating the potential of the asset to grow in the near future based on its tech-induced deflationary features.
As reported earlier by Coinspeaker, Michael Saylor is committed to helping demystify the confusions surrounding the adoption of the Bitcoin cryptocurrency, even to regulators.
“Our macro strategy is to acquire and to hold Bitcoin. We’ll help explain Bitcoin to the regulators, to the public, and to the media. We think acquiring Bitcoin at this time is going to be a wise move. We feel like there is a land grab right now to acquire as much as we can,” he said.